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BRF Reaches Net Income of R $ 191 Million in 2nd Quarter 2019

Result consolidates recovery path and reflects the company’s strategic planning under implementation since last year


BRF, one of the largest food companies in the world, ended the second quarter of 2019 with a profit of R $ 191 million. The strong result was the result of higher revenues in domestic and foreign markets, as well as better operating and commercial performance.

Growth in net operating revenue totaled R $ 8.3 billion, up 18% over the same period last year, while adjusted EBITDA was R $ 1.5 billion. EBITDA margin, which measures BRF’s operating efficiency, reached 18.6%, an increase of 13.6 percentage points compared to the second quarter of 2018.

The company’s debt level, as measured by the ratio of EBITDA to net debt, reached 3.74 times in 2Q19 - the target for the end of 2019 is 3.15 times and for the end of 2020, this same indicator will be approximately 2.65x. BRF also worked to extend the average term of its indebtedness and recently raised debentures in the amount of R $ 750 million and maturity of up to 7 years. As a result, it ended the period with a cash position of approximately R $ 7 billion, sufficient to cover the company’s financial obligations over the next 2 years.

“Second-quarter results show that we are successfully meeting deleveraging, margin expansion, operational excellence and profitable growth commitments. But this is only the first step in the path we have designed for BRF over the next five years, so we continue to rigorously execute our strategic planning initiatives, ”says BRF Global CEO Lorival Luz.

In the Brazil segment, BRF’s net revenue advanced 10.8% over the same period last year and reached about R $ 4 billion. The company remained the leader in the domestic market, with 44.2% market share. In the international segment, net revenues reached R $ 3.9 billion, 24% higher than 2Q18 - due to the good performance of the halal (Muslim) market, where the company is also a leader with 43% share.

“Importantly, work from the beginning of the second half of last year until now also puts us in a prominent position to capture more and more opportunities, either internally, with a possible recovery in consumption, or externally, with the supply shock. protein from China, ”adds Luz. 

About BRF

With a broad portfolio of well-known products and brands such as Sadia, Perdigão and Qualy, BRF has over 90,000 employees committed to the management, quality and innovation of food production. With presence in more than 140 countries, the company is internationally recognized for its performance based on growth and sustainable development. With a history of over 80 years, it produces foods that are a source of strength to get life moving every day for the largest number of people in the world.

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